Abstract
We investigate the impact of the likeability and pronounceability of stock ticker symbols on firm value. Using a unique, comprehensive dataset with hand-collected ratings of ticker symbols, we find that higher likeability of ticker symbols leads to higher Tobin׳s Q. The pronounceability of ticker symbols has a similar but weaker effect. Further evidence suggests that the effect is possibly due to the impact of ticker symbols on stock liquidity or mispricing or both.
•The likeability and pronounceability of 1,959 stock ticker symbols are rated by undergraduate students.•Ratings of ticker likeability and pronounceability are positively related to Tobin’s Q.•The valuation effects of ticker likeability and pronounceability are more pronounced in firms that are prone to mispricing.•Higher ticker likeability and pronounceability are associated with lower levels of Amihud illiquidity in firms that are prone to mispricing.